Foreign Reserves Low And Credit Negative: Moody’s 
Posted 18,September

By Chaveendra Dunuwille

In Local News

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In its most recent publication, Moody’s world-renowned rating agency has highlighted Sri Lanka’s foreign currency reserves as low and its Credit position as negative. 

According to the Agency, while Sri Lanka had around $3 billion in its foreign reserve excluding gold and special drawing rights at the end of August, it was 43% lower than the start of the year and $600 million less than the amount at the end of June. The limited external financing options and the ongoing pandemic are cited as the primary reasons for the country’s financial situation. 

The report stated that since the country’s non-debt generating inflow is limited, investors risk default debt. While the country did experience a modest influx in August, the amount is piecemeal compared to the government’s payment plan.